Tuesday, December 30, 2008

President-elect, Barack Obama, promised many things during his historic run for the white house, and as January 20 draws near, Americans wait, with open wallets, for him to make good on those promises. Tax cuts, new jobs, green energy (and extra cash to pay for them), etc.But there was one, little mentioned promise, that the company I and my husband have invested in is taking steps to side-step, for the coming year, at least. What was that promise, you ask? To double the dividend tax. "But wait", you say, "He said over and over that anyone making less than $250,000 a year would not have taxes raised, but lowered".

HELLO?! Did every voting citizen in this country forget that income tax is only one of many taxes you pay and that is the only tax he promised not to raise???

So, for those of us that are not counting on the myth of Social Security to be around when we reach that magic age, nor relied on an arm-twisting union thug to squeeze pensions out of a failing company to support us forever, but actually chose where to invest our own money and counted on dividends as part of our financial strategy - we're going to feel a bit leaner for the next 4 to 8 years (increased capital gains tax, estate tax, dividend tax, and even a 401K contribution tax).

But thanks to evasive maneuvers by one company we're invested in, for us, it will only be the next 3 to 7 years. They have decided to pro-rate 2009 dividends and pay them out before the end of this year, subjecting them to the nice, low 2008 tax rate and not the promised, doubled 2009 rate.